WOB - you make some very good points.
My starting assumption is that the guys who make and sell Cerrobend must know something about how to use it, but it's also good to bear in mind that their target audience is not the hobby machinist. I think this is true in many cases, where advice or instructions developed for production environments have to be adapted or modified to fit the home workshop. However, I do think it is useful to have a solid and well informed starting point, and then adapt as necessary.
Now that I have read the Cerrobend instructions, I better understand why oiling is necessary in some cases (and as you rightly point out, not always needed). It is in any case an interesting alloy and I had fun learning more about it.